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    JM Bullion Gold and Silver Market Update (7/6/16)

    Gold Spot Price Open: $1,358

    Gold Spot Price Close: $1,365

    Change in Gold Spot Price: +$7

    Silver Spot Price Open: $19.99

    Silver Spot Price Close: $20.04

    Change in Silver Spot Price: +$0.05

    Gold and silver both advanced again on Wednesday despite some stronger than expected economic data. When all was said and done, gold managed to gain little more than 5 dollars while silver gained roughly 5 cents. Platinum and palladium were both also up on the day, however neither metal made gains exceeding 10 dollars.

    Strong ISM Non-Manufacturing Data Reported

    Even though gold and silver prices performed well throughout this week, today saw metals back down from multi-year highs thanks to some great economic data from the United States. At its core, today’s data from the Institute for Supply Management showed that the services sector of the US economy is continuing to expand despite pressures from the outside.

    Officially, June’s ISM reading was up above 56%, at around 56.5% to be exact. This is much better than May’s reading, which brought forth an index reading of 52.9%. In a statement, the ISM said that June’s performance was much better than expected, especially when you consider that original estimates held that the index would only barely eclipse the 53% threshold. For those who may not be familiar with the ISM and its economic readings, any reading above 50% reflects growth for that part of the economy. Being that we have been progressively seeing higher and higher readings, it should come as no surprise that the outlook on the services sector of the US economy is improving at seemingly every turn.

    Even though this data did knock gold away from hitting another multi-year high, the yellow metal performed well and still managed to gain on the day. This is something that further proves and validates the keen risk-aversion that we are seeing not only here at home, but across the world as well. So long as this persists, precious metals will be sitting pretty.

    Gold Nearly Misses 2-Year High

    Apart from the light spattering of US economic data dealt today, there wasn’t much in the way of fresh news for investors to discuss nor reflect upon. Instead, we are seeing much of the same in that spooked investors are not eager to take on any risky investments and are content to instead hold their positions in hopes that they will soon be able to make sense of what the near-term and long-term future of the global economy have in store.

    Against the US Dollar, the GBP is still hovering right around a 30-year low and is not looking much like improving anytime soon. In addition to this, there are fresh worries with regard to the strength of Europe’s leading banking and financial institutions. Simply put, there are an abundance of questions and concerns and only a handful of very vague answers. What is in store for the UK? When will rates in the US be raised? Will other countries exit the EU? All of these questions and more are being asked on a daily basis and very little in the way of viable answers are being offered. Until there is some clarification with regard to one or more of these concerns, investors are going to be running aimlessly and scared. This is good for gold and silver now, but the real question for metals investors is just how sustainable recent gains will be. Should the hot air of worries that is currently inflating the global marketplace subside, the gains made by metals very well might subside as well.

    Wrap-Up

    As was previously mentioned, today was a rather slow day across the US and global marketplaces. The same concerns are being talked about and discussed by investors, however there has been little change witnessed. As we trudge through the final few days of this week, further US economic data will be called into focus by investors the world over. Perhaps we might witness a shift in the tone of the data to be more positive than it has been through the early parts of the summer.

    Disclaimer: All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.

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